A focused portfolio with strong North American and European exposure and a balanced risk profile

Report created on Aug 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with a significant 80% allocation in the iShares Core S&P 500 UCITS ETF, 15% in the iShares Core MSCI Europe UCITS ETF, and a modest 5% in the iShares MSCI EM UCITS ETF. This composition indicates a strong preference for developed market equities, particularly those in North America and Europe, with minimal exposure to emerging markets. The asset class is singularly stocks, reflecting a lack of diversification across different asset types, such as bonds or real estate.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.81%, with a maximum drawdown of -32.51%. This performance suggests a relatively high level of volatility but also the potential for substantial returns. The days contributing to 90% of the returns number just 37, indicating that the portfolio's gains are concentrated in short, significant bursts, which is characteristic of equity-focused investments.

Projection Info

Using Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 319.9% increase, with a 67th percentile at 458.6%, demonstrating potential for substantial growth. However, it's crucial to remember that these projections are not guarantees and are subject to the limitations of historical data.

Asset classes Info

  • Stocks
    100%

The portfolio's complete allocation to stocks, without diversification into other asset classes, positions it for potentially higher returns but also exposes it to greater market volatility. This approach is suitable for investors with a higher risk tolerance and a long-term investment horizon, where the investor can withstand periods of market downturn.

Sectors Info

  • Technology
    29%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Basic Materials
    2%
  • Real Estate
    2%

The sectorial allocation is heavily skewed towards technology, financial services, and consumer cyclicals, which are sectors that can offer high growth but also come with higher volatility. The limited exposure to traditionally defensive sectors like utilities and consumer defensive might increase the portfolio's sensitivity to market swings.

Regions Info

  • North America
    80%
  • Europe Developed
    15%
  • Asia Emerging
    2%
  • Asia Developed
    2%

Geographically, the portfolio is heavily weighted towards North America (80%) and developed Europe (15%), with a minimal exposure to emerging markets in Asia (2%). This geographic distribution suggests a focus on more stable, developed economies but may limit potential growth from emerging markets, which can offer higher returns albeit with increased risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    16%
  • Small-cap
    1%

The focus on mega (48%) and big (35%) cap stocks, with only a marginal allocation to medium and small caps, aligns with the portfolio's overall strategy of prioritizing stability and growth potential of large, established companies. This approach typically offers lower volatility compared to portfolios with a higher concentration in smaller companies.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Considering the Efficient Frontier, the portfolio's current allocation suggests a focus on maximizing returns for a given level of risk. However, its heavy reliance on equities and specific geographic regions may limit its efficiency in terms of risk-adjusted returns. Diversifying into other asset classes or more varied geographic areas could potentially move the portfolio closer to the Efficient Frontier, optimizing the risk-return ratio.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is impressively low, which is beneficial for long-term growth as it minimizes the drag on performance caused by fees. Keeping costs low is a crucial factor in maximizing net returns, especially in a solely equity-based portfolio where transaction and management fees can erode profits.

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